We don’t have the LC module, but I am trying to understand it and I can’t test it myself.
First, does it matter if we pay for shipping directly? Meaning that the shipping costs are never on the PO or invoice for the parts; we just send payment straight to UPS or whomever.
Second, can you itemize charges on a receipt? $20 for freight; $30 material surcharge; etc.
Third, if you can itemize, it still all goes into the material burden bucket, right?
@bboes, you look like you are a fan of landed costs
Landed costs are if you want to allocate the cost of getting the material into your inventory.
when you are paying shipping directly you can take the invoice an allocate it back into the receipt.
Yes, you can put in many indirect charges into landed costs (don’t note them as bribes though, tips would be better).
That said, without the LC module you can capture an approximation of material burden at the part level by putting a %Material Burden. So if you put 3% on a $100. part, you will place $3. material burden into inventory.
Thank you. I think for where I work, Landed Cost is simply not possible given how our vendors charge things like surcharges long after the receipt happens. But I’m glad to know how LC works, so that I can be prepared for internal discussions.
